CMRP Practice Test 2025 - Complete Exam Preparation

In an FOB (Free on Board) shipping point agreement, ownership of the merchandise during transit is transferred to the purchaser as soon as the goods leave the seller's premises. This means that once the seller ships the product, the risk of loss or damage, as well as ownership, shifts to the buyer immediately.

This concept is critical in understanding FOB terms, as it affects liability and responsibility for the goods during transit. While the seller prepares and ships the items, it is the purchaser who holds ownership from that point onward, which also implies that any insurance or claims related to the goods during transportation would need to be handled by the buyer.

The other options do not align with the definitions and implications of FOB shipping point agreements. The seller retains ownership until the point of shipment but not during transit, and the shipping company or transporter is merely a facilitator of the transportation process, without any claim to ownership.